Palmali Loses Arbitration Against SOCAR
Azerbaijan’s state oil company SOCAR has prevailed in the international arbitration proceedings initiated to resolve disputes with the Palmali Group.
The proceedings, conducted in London, resulted in the complete dismissal of claims brought by Palmali, led by businessman Mübariz Mansimov, on the grounds that they lacked both legal and factual basis.
The arbitration concerned 10 vessels sold by Palmali to SOCAR in 2017. The tribunal rejected all of Palmali Group’s claims.
Palmali Group companies, managed by Mansimov—who holds both Azerbaijani and Turkish citizenship—had launched the process in June 2023 with various allegations. The hearings, held in London in November 2025, lasted three weeks, during which Mansimov and other Palmali witnesses testified in person. Palmali was represented by a team comprising UK- and US-based law firms and English barristers.
In February 2026, the three-member arbitral tribunal ruled that Palmali’s claims had no legal or factual foundation and dismissed them entirely. The decision was rendered under the rules of the London Maritime Arbitrators Association and in accordance with English law, which the parties had agreed to apply to the dispute.
It was emphasized that the ruling is final and binding, with no avenue for appeal.
